US, China to Suspend Reciprocal Port Fees for a Year
Fees Have Pushed Up Freight Costs
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The U.S. and China have agreed to suspend tit-for-tatshipping levieson vessels linked to the other for one year, according to Beijing, deescalating a dispute that has become a sticking point in their wider trade war.
Washington began charging special fees on China-linked vessels calling at American ports on Oct. 14, amid a wider probe by the Office of the U.S. Trade Representative into China’s maritime and shipbuilding dominance. The U.S. said it will pause measures resulting from that investigation for a year, according to China’s Ministry of Commerce on Oct. 30.
“Following the U.S. suspension, China will also suspend its countermeasures against the U.S. for one year,” according to thestatement, referring to Beijing’s retaliatory fees against American ships that took effect on the same day.
China’s comments come just hours after trade representative Jamieson Greer said the U.S.’s focus is still very much on reviving American shipbuilding. “We’re trying to rebuild shipbuilding,” he said aboard Air Force One, in response to a question on whether President Donald Trump and Chinese leader Xi Jinping had agreed on port fees at their meeting in South Korea.
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International shipping has beenroiled byretaliatory port charges levied by the U.S. and China on each others’ ships in recent months, a move that pushed up freight costs. The port charges are part of a wider maritime contest between the two countries, as the U.S. tries to compete with China on shipbuilding. Washington has sought the help of allies Japan and South Korea in reviving its industry, signing agreements with Tokyo andSeoulthis week for more collaboration.
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Beijing, in turn,sanctionedthe U.S. units of a major South Korean shipbuilder earlier this month, saying that Hanwha Ocean Co.’s American entities assisted Washington’s investigation of China’s maritime and shipbuilding dominance. China has also said it will look further into U.S. actions on its shipping sector.
